It is the Most Hated Stock In the World, But Now May Be Time to Buy Research In Motion (RIMM)
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Buy Research In Motion (Nasdaq: RIMM).
It doesn't make sense now, we know, but a little more pain should reap massive benefit later on.
Shares are currently 82 percent off of their all-time high $148.13. The company just had another earnings flop, and they're cutting about 2,000 positions along with stretching management thin with new responsibilities.
Analysts are skeptical, many not knowing if the headcount reduction will provide any benefit at all.
But RIM is still profitable. Estimates have RIM earning $5.39 per share in its fiscal 2013, up nearly 4 percent from the $5.19 expected in 2012.
RIM doesn't have any long-term debt, it got rid of that a long time ago.
Verizon (NYSE: VZ), AT&T (NYSE: T), and others will be carrying RIM's new BlackBerry Bold 9900. Verizon will have it run on its 4G network, the fastest available. The 9900 will have marked improvements, including a slimmer size, a touch screen, larger keypad, and optical sensor.
Speaking of which, many are bullish on prospects for QNX. The OS, which replaces RIM's aging BlackBerry OS, will launch in 2012, meaning some might wait for new devices utilizing the system to debut. QNX is a welcome upgrade for RIM, as it, according to the website, "a multi-threaded RTOS optimized for the latest multi-core processors," and, "is a champion of industry standards, including Flash, POSIX and OpenGL ES."
Shareholders are pressuring RIM to separate the CEO and Chairman position. At the very minimum, a split of the two would regain some shareholder confidence.
What's more is that RIM's enterprise value is at $23.58 per share. Although this may mean there's potential for 14 percent downside (of course, shares might slip below the threshold), but upside potential is unlimited.
Bears on the stock say that no one product may be a game changer for RIM, as none amounts to 70 percent or more of its mobile revs, like Apple (Nasdaq: AAPL) has with the iPhone. Inventories also crept up last quarter, to $943 million.
Still, the streamlining of its workforce, a potential separation of CEO and Chairman position, a potential sale, and the QNX operating system make buying RIM on it's slump a compelling idea as a contrarian play.
Driving home the contrarian point, Research In Motion has seen 23 downgrades over the past 6 months, according to data at Ratings Insider, making it the most hated stock in the land.
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It doesn't make sense now, we know, but a little more pain should reap massive benefit later on.
Shares are currently 82 percent off of their all-time high $148.13. The company just had another earnings flop, and they're cutting about 2,000 positions along with stretching management thin with new responsibilities.
Analysts are skeptical, many not knowing if the headcount reduction will provide any benefit at all.
But RIM is still profitable. Estimates have RIM earning $5.39 per share in its fiscal 2013, up nearly 4 percent from the $5.19 expected in 2012.
RIM doesn't have any long-term debt, it got rid of that a long time ago.
Verizon (NYSE: VZ), AT&T (NYSE: T), and others will be carrying RIM's new BlackBerry Bold 9900. Verizon will have it run on its 4G network, the fastest available. The 9900 will have marked improvements, including a slimmer size, a touch screen, larger keypad, and optical sensor.
Speaking of which, many are bullish on prospects for QNX. The OS, which replaces RIM's aging BlackBerry OS, will launch in 2012, meaning some might wait for new devices utilizing the system to debut. QNX is a welcome upgrade for RIM, as it, according to the website, "a multi-threaded RTOS optimized for the latest multi-core processors," and, "is a champion of industry standards, including Flash, POSIX and OpenGL ES."
Shareholders are pressuring RIM to separate the CEO and Chairman position. At the very minimum, a split of the two would regain some shareholder confidence.
What's more is that RIM's enterprise value is at $23.58 per share. Although this may mean there's potential for 14 percent downside (of course, shares might slip below the threshold), but upside potential is unlimited.
Bears on the stock say that no one product may be a game changer for RIM, as none amounts to 70 percent or more of its mobile revs, like Apple (Nasdaq: AAPL) has with the iPhone. Inventories also crept up last quarter, to $943 million.
Still, the streamlining of its workforce, a potential separation of CEO and Chairman position, a potential sale, and the QNX operating system make buying RIM on it's slump a compelling idea as a contrarian play.
Driving home the contrarian point, Research In Motion has seen 23 downgrades over the past 6 months, according to data at Ratings Insider, making it the most hated stock in the land.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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